Employee stress caused by money problems, so substantial that it is affecting their ability to do their job, is effecting a quarter of workers according to a recent survey. This increases to a nearly a third among 18-24 year olds, and those living in London.
The research, published by the CIPD and Close Brothers Asset Management, highlights why organisations need to be doing more to promote and actively support financial well-being, especially in a climate where pay will be squeezed as inflation rises.
The problem is not limited to low earners, with one in five (20%) of employees earning £45,000 to £59,999 saying that financial anxiety has affected their ability to do their job. Also women are more likely than men to report that money worries are affecting their work.
The report also focused specifically on what could be done to improve financial well-being. While, not surprisingly, earning a higher wage was the most cited solution, a third of employees (32%) did not include this in their top five, demonstrating that boosting pay was not enough. Other popular solutions included
- being rewarded in a fair and consistent manner,
- being able to save for the future through a pension, and
- being able to develop and progress in their career (20%).
The report shows how employee money worries is not only bad for their health, but can impact on their productivity. Focusing on employees’ financial well-being, and finding ways to support them, particularly in what is likely to be a turbulent economic climate, over the next 18 months, will be good for business.
This article was posted by Sean McCann the Managing Director of People Based Solutions, an HR consultancy specialising in outsourced HR, consultancy and support for small to medium sized businesses.
If you want to know more about how People Based Solutions can help you manage your approach to reward, performance management and career development, contact us on mailto:firstname.lastname@example.org or phone: 01925 425 957